Finding Text
Department of Health and Human Services
Federal Assistance Listing/CFDA #93.498
COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution
Criteria
2 CFR 200.33(a) establishes that the auditee must establish and maintain effective internal control over
the federal award that provides assurance that the entity is managing the federal award in compliance
with federal statutes, regulations, and conditions of the federal award. The Association is required to
submit an accurate report to HHS for each filing period of funds were received.
Condition
The Association claimed eligible expenses attributable to coronavirus in which the final calculation did
not tie to the HHS Report.
Cause
The Association had a calculation error of $53,510 on the HHS special report causing a difference to the
actual eligible expenses (i.e. there were more expenses reported on the HHS special report).
Effect
The lack of adequate policies over the special report preparation and submission increases the risk that
employees participating in the federal award administration may not be able to detect and correct
noncompliance in a timely manner. The Association submitted expenses over their actual allowable
expenses.
Questioned Costs
There are questioned costs related to expenses of $53,510 that were included in the report.
Context
The HHS special reports included total eligible expenses calculation errors of $53,510.
Recommendation
We recommend that the Association enhance internal control policies to ensure the HHS special report
is supported by supporting calculations. This would include implementing a secondary review and
approval over the reporting.
Views of Responsible Officials and Planned Corrective Actions
Management agrees with the finding, has prepared an assessment of the root causes of this material
weakness, and has developed a corrective action plan.
Indication of Repeat Finding
This is not a repeat finding in the current year.